What is the apr with monthly compounding

Assignment Help Finance Basics
Reference no: EM13489293

1.You are considering moving your money to new bank offering a one-year CD that pays an 8% APR with monthly compounding. Your current bank’s manager offers to match the rate you have been offered. The account at your current bank would pay interest every six months. How much interest will you need to earn every six months to match the CD?

2.Your bank account pays interest with an EAR of 5%. What is the APR quote for this account based on semiannual compounding? What is the APR with monthly compounding?

3.Suppose the interest rate is 8% APR with monthly compounding. What is the present value of an annuity that pays $100 every six months for five years?

4.You can earn $50 in interest on a $1000 deposit for eight months. If the EAR is the same regardless of the length of the investment, how much interest will you earn on a $1000 deposit for

a. 6 months.

b. 1 year.

c. 1 1/2 years.

Reference no: EM13489293

Questions Cloud

Best exemplifies stage four of the sleep cycle : Which of the following individuals is displaying the sleep disorder known as narcolepsy? Which of the following best exemplifies stage four of the sleep cycle? Each of the following disorders occurs during stage four sleep EXCEPT
Describing social identity theory : Would this be correct describing social identity theory as applying cognition, assimilation, and coherence as three key concepts? I figured cognitively individuals categorize their experiences in life to make sense out of the world. Assimilation, ..
Taiwan trip with her boyfriend : I have a crush on a Taiwan girl for more than one year. Today, I just being told that she already has a boy friend who is my friend just broke up with his ex. The problem is I am gonna have a Taiwan trip with her boyfriend. I am not sure it's a go..
Difference between iconic memory and echoic memory : Describe, in your own words, what is meant by the term “memory.” What is the difference between encoding and retrieving? Describe how information moves through each of the three stages of memory in the information-processing model. What is the differ..
What is the apr with monthly compounding : Your bank account pays interest with an EAR of 5%. What is the APR quote for this account based on semiannual compounding? What is the APR with monthly compounding?
Determine the equivalent discount rate for a period length : You have found three investment choices for a one-year deposit: 10% APR compounded monthly, 10% APR compounded annually, and 9% APR compounded daily. Compute the EAR for each investment choice. (Assume that there are 365 days in the year.)
Explain microscale oxidation of a xylene to a phthalic acid : In the microscale oxidation of a Xylene to a Phthalic Acid, 825 mg potassium permanganate, 100 mg sodium carbonate, 3 mL water were put in flask and warmed then 125 microliters of unknown xylene and 10 mg detergent were refluxed for 45 minutes.
Explain what is the volume of 4.0lb of titanium : The density of titanium is 4.51 g/cm^3. What is the volume (in cubic inches) of 4.0lb of titanium. Express your answer using two significant figures.
Compute the percent error for each using the atomic weight : Determine the atomic weight of your metal: Calculate the percent error for each using the atomic weight (literature) off of the periodic table:

Reviews

Write a Review

Finance Basics Questions & Answers

  What would be the total tax payment and effective tax rate

What would be the total tax payment and effective tax rate if the income was earned by a branch of the US Corporation?

  What is the return on equity for firm a and firm b

What is the return on equity for Firm A and Firm B?

  Objective type questions related to finance fundamentals

Objective type questions related to finance fundamentals and If you assume that your raises will just match the inflation rate

  Imagine one 1 of your clients has 100000 to invest propose

portfolio theory please respond to the followingevaluate the capm and the apt in terms of accuracy and determine the

  Selecting appropriate financial institution

Choose the most appropriate financial institution type for each of the following scenarios. Describe your selection and describe at least the several features of each of your selections.

  You have observed the following returns over time2006-

you have observed the following returns over time2006- stock x 14 stock y 13 market 12 2007- stock x 19 stock y 7

  What is next year dividend

The last reported earnings for White Corp. were $1.50 last year and earnings are expected to grow at 5% indefinitely. If their dividend policy is to pay out 50% of earnings in dividends, what is next year's dividend?

  Determine the value of the stock

Given your answers to ( a) and ( b), how are stock prices affected by changes in investor's required rates of return?

  What is the new market value of the company

Again Inc is proposing a rights offering . Presently , there are 450,000 shares outstanding at $90 each. There will be 80,000 new shares offered at $84 each.

  Discuss the effectiveness of the campaign

Excluding the supermarket deals, choose a product and marketing campaign that targets buyers in a down economy. Discuss the effectiveness of the campaign and how you might improve upon it. Be sure to include your thoughts on competition and differ..

  Why companies hd and ld have the same total assets

If the interest rate the companies pay on their debt is less than their basic earning power (BEP), then Company HD will have the higher ROE.

  How much were the bonds worth in 2007

How much would they have been worth if they paid interest at a rate more like that paid during the 1970s and 80's, say 7%?

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd